Establishes a tax credit for grocery stores in a food desert
Impact
The implementation of SB790 is expected to influence state tax codes relating to economic development and community welfare. It specifically amends Chapter 135 of the Revised Statutes of Missouri, adding provisions that support the establishment of grocery stores in designated areas. These tax incentives could attract businesses to invest in areas previously considered economically unviable, potentially revitalizing community access to fresh food and stimulating local economies. Furthermore, the bill establishes a framework for ongoing compliance assessment that mandates annual reporting from recipients of the tax credits, ensuring transparency and accountability.
Summary
Senate Bill 790 aims to provide tax credits to grocery stores establishing themselves in 'food deserts' in Missouri. The bill defines food deserts based on poverty rates and access to full-service grocery stores, significantly targeting communities that are underserved and may lack adequate access to food options. The initiative is intended to stimulate the establishment of grocery stores in these areas, thus enhancing food availability and supporting local economies by encouraging new business operations. For qualifying stores, taxpayers can receive a credit equal to 50% of eligible expenses, regulated within defined limits based on their location and construction costs.
Sentiment
The sentiment around SB790 appears largely supportive, especially from local community groups and economic development advocates who argue that bringing grocery stores into food deserts is essential for improving community health and welfare. Some stakeholders express concerns that while the intention is noble, the execution may not guarantee sustained business operations in these areas. Critics warn about the potential for inefficiencies and a lack of genuine economic benefit if businesses do not remain operational long enough to justify the incentives provided, leading to skepticism from some legislative members.
Contention
There are notable points of contention associated with SB790, particularly regarding how effectively the bill will solve food accessibility issues. Some legislators have raised concerns about the monitoring of the businesses that receive tax credits, questioning whether the tax incentives will truly lead to sustainable grocery operations or merely be a short-term fix. Additionally, the limited budget of $25 million for tax credits raises questions about the reach of the program and how many businesses may benefit from it each year, prompting a debate over potential reliance on public funds for private business success.